A large call trade dominates today's option activity in International Game Technology as its shares climb.
optionMONSTER systems show that a trader bought 3,000 July 16 calls for $1.73 against open interest of 3,578 contracts. At the same time, he or she sold 5,000 July 18 calls for the bid price of $0.80 in volume above the open interest in that strike, so that is a position.
This could be a new call spread looking to profit if IGT rallies to $18 but not much beyond. Alternatively, the trader could be rolling a short-call position to a higher strike and increasing its size, possibly part of a covered call strategy. (See our Education section)
IGT is up 0.84 percent to $16.65, approaching the levels of a month ago. The company, which makes casino-game machines, has been trending higher since gapping lower on earnings results in July and bouncing off support at $11.
About 8,800 IGT options have changed hands in the session so far, already about 3 times its daily average for the last month.
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The maker of casino games is up 36 percent in the last six months on strong quarterly numbers and has been adding gambling apps on Facebook to diversify its traditional slot-machine business.
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